The FINANCIAL -- After reporting a sharp increase in U.S. construction spending in the previous month, the Commerce Department released a report on July 1 showing that construction spending saw further upside in the month of May, according to Nasdaq.
The report said construction spending climbed 0.8 percent to an annual rate of $1.036 trillion in May after jumping 2.1 percent to a revised $1.027 trillion in April. Economists had expected construction spending to rise by 0.5 percent.
With the bigger than expected increase, construction spending rose to its highest annual rate since reaching $1.051 trillion in October of 2008.
Spending on private construction increased by 0.9 percent to an annual rate of $752.4 billion, as spending on residential construction edged up 0.3 to a rate of $359.5 billion and spending on non-residential construction jumped 1.5 percent to a rate of $392.8 billion.
The report also said spending on public construction climbed 0.7 percent to an annual rate of $283.4 billion. Spending on state and local construction inched up 0.2 percent to a rate of $260.1 billion, while spending on federal construction surged up 6.3 percent to a rate of $23.3 billion.
The Commerce Department noted that total construction spending in May was up by 8.2 percent compared to the same month a year ago.